The Clark County School District announced a decrease in its projected budget deficit from $20 million to just under $11 million. Interim Superintendent Brenda Larsen-Mitchell shared this update with the Clark County School Board during a recent meeting. Larsen-Mitchell explained that the district’s initial budget estimates were impacted by salary increases for employees, cybersecurity costs, and litigation expenses.
Initially, the district projected a $20 million central budget deficit, but this number has since been revised to $10.9 million. However, it was emphasized that school budgets were not affected by this central budget deficit. Instead, schools experienced budget adjustments due to errors in data used for funding calculations. These errors led to higher operating costs for many schools, prompting principals to make strategic budget cuts.
During the meeting, several principals shared the challenges they faced with their budgets. For example, Principal Kathi Rozek reported a deficit of $587,000 at Lee Antonello Elementary School. The presentation also highlighted the surplus history of unassigned employees, noting an increase in surplus numbers compared to previous years.
To address the budget deficit, the district proposed short-term solutions such as providing school support and using funds from its unassigned ending balance. Additionally, the district plans to maintain an ending fund balance of over 4 percent, which is required by District Policy 3110.
While the board considered external audit options, a 3-3 tie vote resulted in the rejection of a $50,000 audit proposal from the Council of the Great City Schools. The decision was met with disappointment from the presidents of the two educator unions, who questioned the need for an external audit during a financial crisis.
Looking ahead, the district aims to enhance transparency in budget allocations and improve financial oversight to prevent future deficits. Chief Strategy Officer Kellie Kowal-Paul acknowledged the need for better checks and balances within the district moving forward.
The discussion around the budget deficit comes after weeks of speculation and concern about the district’s financial situation. Some trustees had pushed for the budget to be addressed earlier, highlighting the importance of timely decision-making in addressing financial challenges.
As the district continues to navigate the budget deficit and explore long-term solutions, the focus remains on ensuring financial stability and accountability within the school system. Trustee input and community engagement will play a crucial role in shaping the district’s financial future.